Question

I'm planning to form a single-member LLC in California for my freelance writing business. Can you find out the total cost for me to register, including all state fees, service fees and any other required expenses?

Answer 1

Forming a single-member LLC in California involves several steps and associated costs. Here's a breakdown of the expected expenses:

### 1. **LLC Formation Fee:**
- **California Secretary of State Filing Fee:** The fee to file the Articles of Organization (Form LLC-1) is currently **$70**.

### 2. **Statement of Information:**
- After forming the LLC, you are required to file an Initial Statement of Information (Form LLC-12) within 90 days. The filing fee for this is **$20**.

### 3. **California LLC Annual Franchise Tax:**
- California requires LLCs to pay an annual minimum franchise tax of **$800**. This fee is due every year, even in the first year.

### 4. **Additional Fees:**
- If you plan to use a registered agent service, costs can vary widely depending on the provider, ranging generally between **$100 - $300 per year**.

### 5. **Operating Agreement:**
- While not legally required, having an operating agreement is recommended. You might incur costs if you hire a lawyer or use online services (this can range from **$50 to several hundred dollars** depending on complexity).

### 6. **EIN (Employer Identification Number):**
- You can obtain an EIN from the IRS for free, but if you choose to use a service, it may cost around **$50 - $100**.

### **Summary of Costs:**
- **Filing Articles of Organization:** $70
- **Initial Statement of Information:** $20
- **Annual Franchise Tax (first year):** $800
- **Registered Agent Service (optional):** $100 - $300
- **Operating Agreement (optional):** $50 - $300
- **EIN (optional service):** $50 - $100

### **Estimated Total Cost:**
If you do everything yourself and opt for minimal additional services, you can expect to pay around **$890** for the first year (including all necessary filings and taxes). If you choose additional services (like a registered agent or operating agreement), the total could increase to around **$1,200 or more**.

### **Ongoing Costs:**
Each subsequent year, you should budget at least **$800** for the franchise tax and possibly a minimal fee for any necessary filings.

### Note:
These fees are current as of my last training data. It’s always best to check directly with the California Secretary of State’s website or consult with an attorney for the most accurate and up-to-date information before proceeding.